Africa Monitor report, Fitch Solutions says Zimbabwe\u2019s new monetary system is unlikely to yield quick results. It also projected the country\u2019s challenges to remain acute in the short-to-medium term.<\/p>\n
Zimbabwe recently responded to issues relating to the scarcity of foreign currency shortages by introducing austerity measures. Fitch Solutions said that transformation is likely going to be lethargic given sizeable political and economic challenges. The report read:
\nHowever, political pressure to continue raising wages for public sector workers \u2014 particularly the security cluster \u2014 will likely undercut government efforts to pare back spending. Reduced access to the supply of basic consumer goods and rising prices have led to widespread protests in recent months, which the military and police have been instrumental in helping to contain.<\/p>\n
As such, we believe President (Emmerson) Mnangagwa sees it as essential in order to maintain the support of the national security forces, even at the expense of higher spending. While we deem it somewhat unlikely that the government will comply with the soldiers\u2019 demands to be paid in US dollars following the introduction of a transitional currency (the RTGS dollar), we do see the risk of further pay rises for public sector workers in the quarters ahead, in order to prevent strikes and unrest.<\/p>\n
This slow pace has been projected to result in serious debt management implications and subsequent failure to have access to lines of credit. That would be tricky considering that Zimbabwe\u2019s external stock stood at US$8,2 billion as at the end of March 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"
Africa Monitor report, Fitch Solutions says Zimbabwe\u2019s new monetary system is unlikely to yield quick results. It also projected the country\u2019s challenges to remain acute in the short-to-medium term. Zimbabwe recently responded to issues relating to the scarcity of foreign currency shortages by introducing austerity measures. Fitch Solutions said that transformation is likely going to […]<\/p>\n","protected":false},"author":84,"featured_media":4584,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,7],"tags":[249,376,31,149,371],"class_list":{"0":"post-9413","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all-news","8":"category-files","9":"tag-currency","10":"tag-debt","11":"tag-mnangagwa","12":"tag-president","13":"tag-rtgs"},"yoast_head":"\n